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EU High Representative for Foreign Affairs Federica Mogherini announced a €42.5 million ($52.8 million) financial donation for the Palestinian state, speaking from Brussels on Wednesday.

"We have just adopted a new package of 42.5 million euros including activities in East Jerusalem and support to the building of a democratic and accountable Palestinian state through targeted policy reforms, fiscal consolidation reinforcing businesses, small and medium enterprises, strengthening of Palestinian civil society and providing access to water and energy," she said.

"We are thinking first and foremost obviously to the population in Gaza. The daily life of citizens has been very difficult for too long time and this despite large international humanitarian help including by the European Union," added Mogherini.

The promise of aid comes after US President Donald Trump's decision to withold an aid package from the UN body in Palestine.